GURUFOCUS.COM » STOCK LIST » USA » NYSE » Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) » Definitions » Debt-to-EBITDA
Switch to:

Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA

: 0.59 (As of Mar. 2022)
View and export this data going back to 1997. Start your Free Trial

Debt-to-EBITDA measures a company's ability to pay off its debt.

Taiwan Semiconductor Manufacturing Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $5,084 Mil. Taiwan Semiconductor Manufacturing Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $22,996 Mil. Taiwan Semiconductor Manufacturing Co's annualized EBITDA for the quarter that ended in Mar. 2022 was $47,845 Mil. Taiwan Semiconductor Manufacturing Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2022 was 0.59.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA or its related term are showing as below:

TSM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.26   Med: 0.39   Max: 0.69
Current: 0.69

During the past 13 years, the highest Debt-to-EBITDA Ratio of Taiwan Semiconductor Manufacturing Co was 0.69. The lowest was 0.26. And the median was 0.39.

TSM's Debt-to-EBITDA is ranked better than
57.33% of 696 companies
in the Semiconductors industry
Industry Median: 0.97 vs TSM: 0.69

Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA Historical Data

The historical data trend for Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Taiwan Semiconductor Manufacturing Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.32 0.26 0.28 0.40 0.69

Taiwan Semiconductor Manufacturing Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Debt-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.43 0.56 0.54 0.64 0.59

Competitive Comparison

For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA Distribution

For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA falls into.



Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA for the fiscal year that ended in Dec. 2021 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(4306.1687106505 + 22853.597183231) / 39312.424994865
=0.69

Taiwan Semiconductor Manufacturing Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2022 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(5084.2169369674 + 22995.918864069) / 47845.089742643
=0.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2022) EBITDA data.


Taiwan Semiconductor Manufacturing Co  (NYSE:TSM) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Taiwan Semiconductor Manufacturing Co Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Taiwan Semiconductor Manufacturing Co's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Taiwan Semiconductor Manufacturing Co Business Description

Taiwan Semiconductor Manufacturing Co logo
Address
No. 8, Li-Hsin Road 6, Hsinchu Science Park, Hsinchu, TWN, 300-096
Taiwan Semiconductor Manufacturing Company, or TSMC, is the world's largest dedicated chip foundry, with over 58% market share in 2020 per Gartner. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

Taiwan Semiconductor Manufacturing Co Headlines

From GuruFocus

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)